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Abstract
This paper argues that the Egyptian revolution of 25 January 2011 has to be understood in the context of neoliberal economic shift. The two decades of economic liberalisation policies were accompanied by authoritarianism while at the same time these policies opened up opportunities for crony capitalism. Post Mubarak Egypt has witnessed positive developments such as the rise of political parties, independent trade union federations and other social groups aiming to participate in rebuilding a democratic society. The paper explores the potentials for, and challenges against, building a democratic society in Egypt.
Acknowledgements
I would like to thank Professor Raymond Hinnebusch and Professor Emma Murphy for their helpful comments on an earlier draft of this paper.
Notes
In the case of Egypt, crony capitalism refers to a coalition of new ruling elite that was constituted of former state bureaucrats and rent seeking urban and rural elites who benefited from a process of free market reforms due to their privileged access to political networks of power within the state (Henry and Springborg Citation2001, pp. 154, 162, King Citation2007, pp. 439, 446. For crony capitalism under Sadat see Waterbury Citation1983, p. 432, and Sadowski, Citation1991 who examines the role of crony capitalism in the development of agribusiness, especially in the 1980s in Egypt).
During the Second Cairo Investment Forum (9–10 December Citation2007) attended by the author, these links were quite apparent as different panels made up of agri-business, land developers and government officials including Gamal Mubarak agreed about the direction of economic policy and presented a united front on stating the goals of industry and agriculture. See http://www.iktissadevents.com/events/CIF/2/profile
Amira Howeidy reported that others sources estimated the number of dissent action against the Mubarak regime in 2010 anywhere from ‘900-1,000, maybe more’ (Howeidy, Citation2010–11).
In 1997 when Law 96/1992 took effect, a Saudi Prince Al-Walid purchased 100,000 acres of land at a cost of LE50 per acre or less than US$10 per acre, a deal facilitated by then minister of agriculture, Youssef Wali. Called as the Toshka Project, this mass of land was supposed to launch a successful agri-business providing local jobs through export of vegetables. However, in 2010 investigations found out that the project, despite consuming unlimited resources and public financing for infrastructure, had failed to fulfil its initial promises. Recently, the military rulers of Egypt forced Al-Walid to return 75,000 acres of the land to the Egyptian state (Al Masry Al Youm Citation2011l).
In a recent article on the Muslim Brotherhood, Philip Marfleet has stated that the Brotherhood benefited from Sadat's policies of liberalisation and in the course of the 1980s they increased their economic power. Currently they control ‘40% of all private economic ventures’ (Marfleet Citation2011, Naguib Citation2009, p. 115). The Brotherhood's openness to free market policies was also emphasised by Mohammed Habib, then Deputy Supreme Guide of the Brotherhood (Author's interview with Mohammed Habib. Cairo, January 2006).
Sectarian clashes first appeared in November of 1972 under Anwar Sadat. Sadat had groomed fundamentalist Islamist groups which he used to crush the Nasserists and leftists. By the time his political rivals were defeated, the Islamist groups too had become autonomous and began pursuing their own agendas. For more on this history, see Ansari Citation1986, pp. 175–176.
Israel too has been watching Egyptian developments closely as Cairo united the two Palestinian factions in early 2011. Egypt's plan to permanently open the Gaza–Egypt border is also worrying Israel.
In the recent months, the Land Center for Human Rights has documented the case of two villages (Moses and ElKhadr) in the governorate of Fayoum where 10,000 villagers decided to form a union. Since their announcement, the village authorities have cut off water, health services and electricity while restricting access to food. The villagers are determined to pursue the formation of a union, but they are afraid of being starved by the village authorities because of their decision and have thus appealed to the military rulers of Egypt (Land Center for Human Rights 2011).
